All of the following are characteristics of a bond except
A) the coupon payment is the interest payment on the bond.
B) a bond represents a promise to repay a fixed amount of funds.
C) bonds generally pay dividends each year.
D) the face value is repaid when the bond matures.
C
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Two variables that affect the slope of the aggregate demand curve are
a. government purchases and real taxes. b. tax rates and interest rates. c. government purchases and interest rates. d. exchange rates and income rates.
The unemployment rate equals the number of persons:
A. unemployed divided by the number employed. B. unemployed divided by the number in the labor force. C. unemployed divided by the population age 16 and over. D. not working divided by the population age 16 and over.
If the errors are heteroskedastic, then
A) the OLS estimator is still BLUE as long as the regressors are nonrandom. B) the usual formula cannot be used for the OLS estimator. C) your model becomes overidentified. D) the OLS estimator is not BLUE.
Suppose that the federal government grants a 50 cent per gallon subsidy to buyers of gasoline and that the demand for gasoline is highly inelastic while the supply is highly elastic. Under these circumstances, the benefit of the subsidy
a. will go primarily to producers. b. will go primarily to consumers. c. will be split equally between consumers and producers. d. cannot be determined because the actual benefit of a subsidy is not influenced by the elasticities of supply and demand.